Lots of interesting news last week, particularly on the risk management front: Deloitte outlined implications of new Basel trading book capital rules (credit and options desk would consume less regulatory capital); and Deutsche Bank closed a landmark $3.5B CLO transaction, which reveals growing interest in trade finance exposure, but also aligns with the German bank’s ongoing risk and balance sheet (i.e. regulatory capital) management efforts.  

As we’ve written here before, regulatory capital is a major driver in the rise of P2P lending and remains a major challenge for banks looking to lend.  For those interested in capital relief and related transactions (such as DB’s CLO deal), we’d strongly encourage review of SCI’s research report, “Capital Relief Trades: The Mechanics of Risk Transfer,” released this week.  

Our recap of key stories from last week is below:

  • Deutsche debuts landmark CLO (GT News, 12/11/15) Deutsche Bank issues its third and largest securitization of trade finance assets to date, totaling $3.5bn. DB’s closing of this synthetic CLO marks the largest securitization of trade finance assets to hit the market.
  • Personal-Loan Shop Entering Market (AB Alert, 12/11/15, subscription required) Jefferies to lead pricing of the first of two securitizations by online personal lender, Enova International, totaling $200 million in unrated securities.